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Indian joins Asian peers for smaller LNG contracts
Indian companies like their Asian peers are moving towards shorter and smaller orders for liquefied natural gas (LNG), revealed S&P Global Platts, a leading provider of benchmark prices and analytics for the energy and commodities markets.
According to analysts, global natural gas price which is witnessing an increasing trend for the first time in past couple of years is driven mainly by rising crude cost and its influence on oil-linked supply contract. This is apart from the increasing demand globally including that from India which is among the largest importer of energy fuels.
Talking on the changing trends in the Indian LNG market, Marc Howson, director, LNG Market Development at S&P Global Platts on the side-line of an industry event in Mumbai on Wednesday, said that the LNG buyers are shifting towards shorter and smaller contracts.
According to Marc, among the major global gas hubs, the US still remains the cheapest in comparison to other sourcing countries, despite the high transiting cost on account of distance.
India has been slowly registering a sustained growth with regard to LNG sourcing as government plans to double the share of natural gas in country’s energy mix to 15% in the medium term from just over 6.5% at present. The glut in global LNG supply combined with a drop in the price has also given further impetus to the government’s plan. Mack Hollins Authentic Jersey
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